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GM makes $1,500 OnStar subscription mandatory for GMC, Buick and Cadillac models

GM makes $1,500 OnStar subscription mandatory for GMC, Buick and Cadillac models
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If you don’t want to pay Subscriptions in the car every month, no problem: just pay everything in advance. This is the line from General Motors today after news broke that it’s making a three-year, $1,500 OnStar subscription to connected services a mandatory “option” for new Buick, GMC and Cadillac Escalade models. The subscription, which enables things like using your phone as a keychain, data-enabled navigation, audio streaming, and Amazon’s virtual assistant Alexa, is still optional on other GM vehicles, with the premium package costing $49.99 per month. But don’t be surprised if this new setup spreads across the automaker’s portfolio.

Although today after a it attracts attention Detroit FreePress Report, news of Onstar becoming a mandatory subscription was first reported on July 5 by GM authority. The $1,500 OnStar fee will effectively increase the base prices of these cars, although the exact increase will vary by model. All Buicks see a price increase of $1,500. Higher trimmed GMCs will see a rise of just $905 the Lobster EV didn’t get an MSRP boost. GMC’s base-model Sierra and Canyon pickups are the hardest hit with a $1,675 increase. By far the most common price increase is $1,500, which is also the case for the Cadillac Escalade. Automotive News reports.

Speak with GM authority, A spokesman said having customers pay for the service will “improve.” [their] Vehicle ownership experience.” They continued, “By including this plan as standard equipment in the vehicle, it offers greater customer value and a more seamless onboarding experience.” The automaker confirmed this A that no discount will be offered to buyers who do not activate OnStar and choose not to use the Services.

The way this change was introduced is a fairly classic GM-enforced bug. Dealer premiums aside, new car prices are somewhat insulated from rapid inflation, as they’re usually set in annual increments as each new model year comes out. We are now entering the 2023 launch season and are already seeing some hefty price jumps to account for increased supply chain costs. GM could have raised all those MSRPs, stuck on inflation, and offered a free three-year OnStar subscription to soften the blow.

Instead, it has thrown itself into the melee with this obligatory option nonsense as consumers rant about new-car subscription options. It’s not as bad as trying to pay for things like heated seats, as BMW recently discoverednor is it that complicated like Toyota’s plan to rotate its remote-start key fob Function in a subscription service. But the idea of ​​buyers being forced to pay for something they might not want, which was previously an optional subscription, will undoubtedly cause concern. And the whole thing feels a bit Orwellian when GM insists on still calling it an “option” that’s “offered.”

We reached out to GM to ask if this mandatory subscription model would be headed to Chevrolet and other Cadillacs next, and a spokesman responded by saying the plan is “offered on new Buick, GMC and Cadillac Escalades at this time becomes.”

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